In a laudatory article on the progress of the Greek economy, the Financial Times highlights the country’s significant turn from the brink of bankruptcy and exit from the eurozone, reaching the investment grade threshold today.

A British newspaper report, signed by journalist and writer Eleni Varvitsiotis and editors in Brussels and London, highlights that after Standard & Poor’s changed its outlook on Greece to “positive” in April, many, like central banker Giannis Sturnaras, expect the country will restore the investment level after the completion of electoral procedures this year. This will depend on whether the new government continues reforms and maintains political stability.

At the same time, it is emphasized that, although the New Democracy maintains a lead of five to six percentage points from SYRIZA, which is still called the “radical left party”, after the competition at the beginning of July.

The newspaper, among other things, publishes statements by the Executive Director of the Eurobank Fokion Karavias, who comments that the return of the country to the investment level will be “the biggest change in the European economic system”, adding: “After all, nothing is impossible.”

The report cites a number of official Greek economic data highlighting that “after years of Europe’s troubled child,” the country has marked one of its strongest post-pandemic recovery with comments from foreign houses such as Goldman Sachs. that Greece will continue to outperform the eurozone average this year and into 2024.

The contribution of critical sectors of the economy to its recovery is highlighted, such as tourism (reportedly up 97% from a record 2019), exports and construction activities.

Also included is the opinion of Deputy Minister of Finance under Prime Minister Alexis Tsipras Giorgos Chouliarakis, who, as an adviser to Mr Stournaras, states that Greece “will take another decade” to return its gross national product to the highest point of the previous decade, and that “only a serious multi-year plan to invest in human capital, basic infrastructure and medical services” will increase wages.

According to Nikos Vettas, CEO of IOBE, “many households are under pressure from rising prices for food, energy and other essentials.”

The economic turnaround was also partly based on massive wage cuts, the article comments, with Bank of Greece economist Dimitris Malliaropoulos noting that “the price of this improvement was high” but also that “economic activity that was now in the dark is being taxed thanks to the electronic payments that the pandemic has left as a legacy to the economy.

Also included is the opinion of Legal & General Investment Management Executive Director Chris Jeffrey that Greece has benefited in an inflationary context from the fact that it is among the countries with incomes that drive inflation, but does not have as many liabilities that affect the growth of world prices, given its debt. profile with an average maturity of 20 years compared to seven years in developed countries.

“Greece’s nominal GDP has grown by more than 25% over the past two years, while its nominal debt has risen by just 4%,” Mr. Jeffery said, predicting a further improvement this year, which will also bring a return to investment grade.

Source: Financial Times.